Why exactly do developers build an application? Is it only to spend time making random applications on the internet? Or maybe there are some other reasons. Many times we forget building a mobile application is not enough, it should be able to increase the company’s revenue numbers. But how do we do?
According to many reports, mobile application development companies in the USA are going to generate more than $500 billion by the end of 2021. This clearly shows companies need to start providing more mobile applications to keep their businesses running. Even though the numbers in the markets are growing, there are still a few mobile application developers who find it hard to expand their application’s market and gain customers.
With the growing demand for smartphones, mobile applications have become a must. According to reports, about 55% of people prefer using a mobile application rather than visiting an entire website. The constant growth of mobile application use has increased rapidly. Many mobile phone users are spending more than half their time on mobile applications. There are about 85% of humans who prefer using mobile applications.
Some of the fastest-growing mobile applications are music, gaming applications, social media applications, health and fitness applications, etc. These applications have built a customer base and will continue to grow, not only in numbers but their technologies will also grow rapidly.
The main question is how can companies generate better revenue rates by making mobile applications?
Building an application is not a small thing. It can require days of hard work and planning. If a mobile app development company uses the right strategies and practices while building their applications, it can for sure be useful for them in increasing their revenue number.
What is application revenue?
An application revenue system is the growth of income from different sources, by using an application. This can also be defined as what the mobile application is offering to its users, what its right worth is and how much will the application be worth. Application revenue is basically about how an application generates money yearly. This is important for building a mobile application, the planning should be done in advance to make sure no mistake is made in the future. If a developer has a good application format planned out, it will attract more investors for them.
There are different types of application profit systems to grow your mobile application.
The market for in-applications was worth about $70 million in the year 2018 and coming to the year 2028, many people have estimated for it to grow by about 500 million dollars. There are approximately 4 billion mobile phone users, out of which only 50% have access to the service the internet provides. These people that have access to the internet use their mobile phones for using different forms of applications. The most commonly used applications are social media applications, fitness applications, online service providers, meditating applications, gaming applications, etc.
In application advertising means showing ads in between the use of those applications. Sometimes when we are using an application a random ad pops up on your screen when you are watching a video or shopping for shoes? These ads are paid. The longer you watch the ad, the more money the application makes.
The ads are shown to you to increase the product’s customer views. Both the company owners pay the application’s owners money, in return for their services. To show ads in an application, the application developer partner’s with an ad showing company and then has to combine their development kits. Development kits produce code that is added to a customers application properly, to make sure ads are shown clearly after every few minutes.
To gain revenue numbers from the in-application promoting method, the applications should have a lot of live users using the application every day. The more the consumer activity, the more money they make. Without any activity, the application will not make enough revenue to keep running. To increase the number of users, developers have to connect with an ad network.
In application purchases
In-app purchases are one of the best ways to make more money easily. In mobile applications, purchasing an application is even more effective than in-application advertising. This helps the application sell their own products and grows professional relations between their customers and them.
In the year 2017, the in-application purchases revenue was about 37 billion dollars. It is necessary to own a private application stores, this is because it lessens all the hustling bustling for the customers. Consumers can easily browse your services and products easily.
In application purchases are not just for physical products, these applications can be used to provide different services to people. These services can pay a good amount of money to you. Providing virtual services to customers from mobile app development services have grown the different companies revenues over the years.
One of the most effective ways of in-application purchase is providing customers with limited time period offers. These offers play games with the customer’s mind and make them never want to miss out on a deal.
Another way of in-application purchases is by providing premium experiences. Premium plans are those that can only be accessed by a limited number of customers. These plans charge a little more money than the regular plan but are filled with offers. These premium plans could also make you more money. These are the services that feel a lot more luxurious and if your customers like them, they will not mind spending a little more on them.
Your premium packages should be better than your basic packages. These should not be too expensive, should be filled with an offer and have value. These premium packages should have access to special content, offers or products.
This does not sound good at all but it has proven to be a very effective way of making more money. Selling someone’s data can sound illegal, but now You do not have to worry, no personal information or data is ever shared, only impersonated information is shared. Data sharing has become the new normal. Companies can collect data from their customers and sell it to other websites, to make more money.
Data sharing has become common nowadays and a lot of iOS application developers and Android application developers are selling customer data to big companies.
The information usually shared can be of a customer’s current location, it could be their IP addresses, the different devices they use, types of network , etc. There is still a little possibility of the data shared getting into the hands of other parties. And to avoid any problems, information should be properly documented under the terms provided by the company and privacy policies. The information companies share can many times be informational stuff for different institutions, product sellers, different marketers and other third parties. This data selling could be viewed as a good revenue method.
With the constant use of the different mobile applications, users have their data safely secured in the application. And for different companies, it can become an advantage to gathering the user’s data. Companies can then keep track of your user’s browsing history and keep track of their data at all times.
Having insights about your customer’s information can help you better understand their behaviours, likes, dislikes and their interests. This information can help you show the content or product your customer likes and entice them into buying it.
Designing personalized options will definitely help boost your sales. Personalizations for your customers in a mobile application help you build a better connection with new and old customers, this would not be possible in a physical location.
Most of the mobile applications available on an android play store application downloader are free of cost and use. But then some charge you a fixed amount to download them. Owning a purchased application can also be good. You easily can build a gaming application, fitness application, or a new social media platform. Many Android application development companies are building paid applications to increase their customer application usage and their yearly revenue numbers.
After you give the payment to download an application, you get access to all the features and the application can easily be used on multiple devices at one time. Sometimes free applications do not provide you the feature of using them on all platforms.
When it comes to paid applications, revenue growth is directly connected to the number of new users using the application or downloading it every month. To keep your user base live, application developers and programmers need to keep on coming up with new features in the application.
Use of Social Media
The more customers you get to view your application, the extreme growth your revenue numbers will go. When it comes to different mobile applications, and that too when you are trying to increase your revenue numbers rapidly, you have to gain access to a bigger customer platform and gain visibility on different social media platforms. To be able to get your application to a bigger audience, social media is the top platform for that. People are obsessed with social media. We use it all the time. By selling products here, you gain customer views.
Social media is filled with thousands of brands gaining consciousness every day. By using social media platforms, you can easily share different links about your application. This will grow your application’s reach.
People who you know and use social media, you can ask for their help in sharing your application’s information online. This is also very helpful. Most brands gain reach only after they are shared in people’s stories. Your application discovers new customers via this.
Using social media to reach new customers is completely free and is filled with opportunities.
When you gain a number of base users for your mobile application, you can then use different and new methods of marketing, one of these is Affiliate marketing.
In this marketing strategy, you easily can show ads of different products owned by different companies, in your application. These could be about anything, from showing ads about different social media or fitness products, anything that your customer prefers. Showing different ads gives you a commission, every time your customers visits their products or buys them.
For better results, your application should only show products of your customer’s liking, or else they will show no interest in them at all. There are some best application development companies in the USA that have applied this strategy and now have increased revenue by at least 15%.
When your customers follow an ad’s link and are then okay with providing their personal contact information, you then are using the leading generation.
You can also use different marketing strategies for free if you want to increase your revenue numbers on an everyday basis. But do not be so sure as your user’s behaviour can depend on the quality of services your application is providing.
To grow your application’s user numbers rapidly, you have to engage and keep track of their activities more than ever. But how is that possible? Email marketing could be a good solution to this.
In email marketing, you can send more descriptive messages to your consumers about the new features or offers you have available on your application.
This form of marketing is also helpful because people might stop using your application for some time, but they do not always change their email addresses. People always keep track of their email, this way you can be sure that your customers have viewed your mail and might start using the website again.
How much effort should one really put into email marketing? A lot. Email marketing is just as important as social media marketing. Both help you reach your designated audience on time. Both these things grow your company’s reach and your product reaches App Development.